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CNEW

$7.74+0.39%Asia Pacific20/100
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VanEck China New Economy ETF · VanEck

Data as at 29 March 2026

TL;DR

Tracks roughly 50 Chinese companies in consumer, technology, healthcare, and clean energy — explicitly excluding the large state-owned enterprises in banking and energy that dominate most China ETFs.

MER (Annual Fee)
0.57%
#4 lowest in Asia Pacific
1Y Return
+9.3%
3Y Return (p.a.)
+0.7%
Dividend Yield
0.86%
Trailing 12 months
AUM
$87.6M
Assets under management
Avg Daily Turnover
$276K
Avg shares × unit price
Unit Price
$7.74
As at 29 March 2026
Provider
VanEck
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Strategy

Invests in private-sector Chinese companies selected by Solactive, filtered to exclude state-owned enterprises (SOEs). This creates a portfolio that looks fundamentally different from broad China or emerging market ETFs.

Top Holdings

BYD
8.5%
Alibaba
7.2%
Tencent
6.8%
NetEase
5.4%
Meituan
5.1%
JD.com
4.8%
Baidu
4.2%
Li Auto
3.8%
Wuxi AppTec
3.2%
Shenzhou International
2.9%
Key Fact

CNEW excludes companies like Bank of China, ICBC, and PetroChina that make up a large portion of standard China index funds. Excluding state-owned enterprises creates a fundamentally different risk and return profile.

Suited for

Investors who specifically want exposure to China's private sector and consumer economy, not the state-owned banking and energy companies that dominate most China index funds.

Risks

Chinese regulatory risk is the primary concern — the government's 2020-2021 crackdowns on technology and education companies demonstrated that large Chinese companies can be significantly affected by policy changes. Higher 0.57% MER.

ETFCheck Score20/100
Fees (40%)15
Fund Size (25%)9
Liquidity (20%)46
Yield (15%)20
How scores are calculated →
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Frequently Asked Questions - CNEW

Why does CNEW deliberately exclude Chinese state-owned enterprises from its portfolio?+
CNEW's index specifically screens out state-owned enterprises (SOEs) to focus on China's private-sector innovation economy - companies in technology, healthcare, and consumer sectors that are less subject to government directives prioritising political objectives over shareholder returns. SOEs have historically delivered lower returns on equity and face regulatory mandates that can conflict with profit maximisation. This makes CNEW a fundamentally different China bet compared to broad ETFs that include large state-owned banks and energy companies.
How does CNEW compare to buying China exposure through Vanguard's VGE on the ASX?+
CNEW offers targeted exposure to China's private new-economy sectors at a 0.57% MER, while VGE provides broad emerging markets exposure (0.48% MER) where China represents roughly 30% of holdings including SOEs. VGE gives you diversification across dozens of countries but diluted and less selective China exposure. SMSF investors who are bullish specifically on Chinese private tech and healthcare innovation may prefer CNEW as a satellite holding alongside VGE's broader diversification.
What regulatory risks does CNEW face from Chinese government crackdowns on private technology companies?+
CNEW's focus on private-sector tech and healthcare companies means it is directly exposed to Chinese regulatory crackdowns, as seen in 2021 when Beijing targeted Alibaba, Didi, and private education firms, wiping billions in market value. While the regulatory environment has since stabilised, Australian investors must accept that Chinese authorities can impose sweeping industry rules with minimal warning. CNEW's 15.8% one-year return reflects a recovery, but further crackdowns remain an unpredictable and material portfolio risk.
What's the income and tax treatment of CNEW distributions for Australian SMSF investors?+
CNEW's 1.65% yield is distributed as foreign income with no franking credits, as all underlying earnings are sourced from Chinese companies. China withholds 10% tax on dividends, and Australian investors can typically claim a foreign income tax offset for this withholding on their tax return. SMSF trustees in accumulation phase should note that CNEW's distributions are taxed at 15%, while those in pension phase receive distributions tax-free, making it more efficient for retirement-phase SMSFs.